It's a thought, but still isn't making it completely clear.
If we were to change it like this:
virsh dumpxml dom> domain.xml
vi domain.XML
(make changes to the XML using your text editor)
virsh create< domain.xml

That would probably work. The "vi" here is only useful because people will recognize it easily.

That, and vi is the only editor required by POSIX, unless you count ed
(rms explicitly requested that emacs not be part of POSIX, and nano,
gedit, kate, and so forth are all relative whippersnappers in the editor
market). But whatever you do, please don't change it to 'notepad.exe
domain.xml' :)